Elk Grove Village Mayor Not Concerned With Governor’s Data Center Order
Illinois Governor JB Pritzker has issued an executive order pausing state tax incentives for data centers, citing legislative inaction. Elk Grove Village Mayor Craig Johnson stated the local impact will be minimal due to local tax controls and water management. The order aims to address data center energy and water consumption and assign related costs.
Illinois Governor JB Pritzker has issued an executive order, effective July 1, to pause state tax incentives for data centers under the Data Center Investment Program. The governor's office stated this decision followed legislative inaction from the Illinois General Assembly regarding policy goals for the industry. The pause does not affect local property tax incentives, county-level 6B incentives, or tax increment financing (TIF) funds.
Elk Grove Village Mayor Craig Johnson downplayed the order's local impact, noting that the village manages its own tax incentives and water supply. He highlighted Elk Grove Village's status as having the second-highest concentration of data centers in the U.S. and explained that most local facilities use efficient "closed-loop" cooling systems, which have reduced municipal water consumption despite industry expansion.
The governor's administration outlined policy goals, including urging a specific electricity rate class for data centers to assign utility costs, and calling for strict energy and water efficiency standards, comprehensive water permits, and mandatory water-use disclosures. Mayor Johnson disputed the state's claim that some data centers use up to 5 million gallons of water daily, stating that the entire village's daily consumption, including all businesses and residents, is less than that amount. State Sen. Laura Murphy, whose district includes parts of Elk Grove Village, indicated that any state legislation to address these issues would need to wait until the fall veto session.